Chrysler to be sold off

DaimlerChrysler today announced the €5.5bn sale of its loss-making Chrysler operation to a US private equity group.

The deal with Cerberus Capital Management reverses the merger 10 years ago that saw the American and German car giants join forces.

DaimlerChrysler is now set to drop the Chrysler brand from its name, although it will retain a 19.9% stake in Chrysler under the deal, due to be completed by the third quarter.

The sale is expected to hit Daimler group profits by €3bn to €4bn this year, but the firm said it was “confident” the deal was the best solution for both businesses.